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How’s Venture Capital Changing in 2023

VC Cafe

Taking stock of the venture capital market in 2023, it’s clear to see that we’re in a transition point. Prices went up from round to round, and startups were encouraged to grow, grow, grow, and not to worry about profitability. In today’s market, I believe small is beautiful, and that specialisation matters.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I can’t control the market. Private markets for stocks are the opposite.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Some even insisted that all prior preferred stock had to be converted to common stock. A cram down is different than a down round. Why do VCs Do This?

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Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. This is minutes 8-11.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. Then, if you end up doing a down round, it suddenly matters a lot. Go read it now – I’ll wait.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The next reason is to establish a competitive advantage over your competition and quickly acquire a substantial market share. Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. The shares given out can either be common stocks or preferred stocks. ? Debt investment.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

They have seen one side of a market where many of us have seen the ebb and flow multiple times. Still, market amnesia by ordinarily rational actors always surprises me. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. I spoke about a lot of things during the keynote.